WEDNESDAY, MARCH 25, 2020
 A common mistake a lot of first-time renters make is thinking they have to file an insurance claim for any small incident that goes wrong. Not only is it not necessary, but it may also cause your premiums to skyrocket.
Before filing an insurance claim, follow these few steps.
Evaluate the Damage Compared to Your Deductible
When you sign a policy for renters insurance, you agree to a deductible of a certain amount. Say your deductible is $500. This is $500 that you will pay out of pocket after filing an insurance claim in order for the insurance agency to pay their part. If the damage done costs less to repair than the cost of your deductible (in this case, less than $500) it’s likely not worth it to file a claim.
On the other hand, if you lose expensive insured items that are worth much more to replace than your deductible, it may be worth your while to file an insurance claim.
Know the Limits of Your Policy
Not everything is covered under your renters insurance policy. If an incident happens that isn’t covered by your insurance, it would be a waste of time filing a claim, as it would be denied, anyway. A basic renters insurance policy won’t cover damages due to floods or earthquakes. It also won’t usually cover damage done to the structure of the apartment. If an outside force damages the physical structure of your apartment, notify your landlord immediately. Their property insurance should be able to provide compensation to fix the damages.
Don’t File Too Many Claims
It’s also important to keep track of how many claims you’re filed. Multiple claims in a short period of time send off red alarms to the insurance company. Not only may you have higher premiums after filing multiple claims, but you could also be dropped by the insurance company for being too high-risk.
Understand the Events Surrounding the Incident
Certain incidents may not be covered because of their suspicious or ambiguous nature. If an incident can be blamed on you, the insurance company is likely to deny your claim. If you file for several claims with little or no evidence of the incident, your agency may drop you.
Most policies have a time limit in which you can file a claim. Make sure you know your policy’s time limit to file.
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